Options for Buyers Negotiating Multiple Offers
Posted Thursday, December 18, 2014
As a buyer, finding the right real estate and deciding to place an offer can be overwhelming enough without the stress of discovering you’ve entered into a multiple-offer situation. Yes, even in this buyer’s market, you can find yourself competing against other buyers.
Purchasing a house is emotional, and when it comes to having to negotiate for your dream house, you need to keep a level head and understand your options. Be prepared for the following scenarios:
- Seller can just accept the best offer. If it’s a property that you absolutely can’t let slip away, you might want to give the seller exactly what they’re asking for. There is a chance you could get a deal with a lower bid, but you need to talk with your real estate agent and decide if it’s worth taking the risk. You could also end up paying more than the buyer would have accepted, but at least you’ll have the house.
- Seller can let all parties know that there are multiple offers. In this case, you know there is competition. That means there’s a chance, even if you do give them their asking price, that you might not be the only potential buyer putting in a full price offer on the home.
- Seller can counter one offer and wait for a response, but not dismiss others. If your offer is the one that’s being countered and you know other parties have placed bids, it’s likely you’re the highest bidder. You’ll want to negotiate with the seller and hopefully meet somewhere in the middle.
- Seller can counter one offer and reject all others. All you can do is hope that your offer is the one the seller accepts!
There are advantages and disadvantages to all of these scenarios, but make sure you take each into consideration before submitting a proposal or counter-offer. Also, talk to your agent and ask how multiple-offer negotiations are handled by the agency that has the house listed for sale.
When bidding on real estate with multiple offers, you’ll have to move quickly. Have a plan and be prepared for any and all situations.
If you’d like to speak with an agent who is a skilled negotiator, including multiple-offer negotiation, please call or email me today.